vc

2020 Was the Biggest-ever Funding Year for VC

Venture spending didn’t slow down in 2020—it rose to new heights.
article cover

PwC/CB Insights

· less than 3 min read

Stay up to date on emerging tech

Drones, automation, AI, and more. The technologies that will shape the future of business, all in one newsletter.

January is good for two things: sticking with New Year’s resolutions and digesting year-in-review reports. We’re already behind on the former, so let’s focus on the latter.

PwC and CB Insights just released their latest report on VC funding. The US highlights:

  • Funding: 2020 was the biggest-ever funding year, with VCs disbursing $130 billion. The previous record was $122 billion in 2018.
  • Unicorns: 28 startups grew unicorn horns in Q4 2020 alone. For context, the US only has 225 total unicorns (startups valued north of $1 billion).
  • Megadeals: We saw more $100+ million deals than ever last year—318 versus 220 in 2019.
  • Miami: Funding went up 685% quarter over quarter in Q4 and 72% year over year 👀.

And for the first time, “emerging areas” attracted the majority of US funding in 2020. The top three are familiar faces: AI, fintech, and digital health. Industry experts told us to expect digital health to captivate VC hearts and minds in 2021 as well.

Bottom line: Like public market investors, VCs were more than comfortable backing tech companies through the peaks and valleys of 2020.

Stay up to date on emerging tech

Drones, automation, AI, and more. The technologies that will shape the future of business, all in one newsletter.